ASSIGNMENT$-$WEEK $4$

London Enterprises uses a standard cost system in its widget division. The following standard

unit costs apply to the manufacture of widgets in June:

Direct Materials

Direct Labor

Variable $\frac{O}{H}$

Fixed $\frac{O}{H}$

Normal production

$120$ lbs @ $$1\mathrm{.}50$ perlb.

$3$ hrs $$$15\mathrm{.}00$ per hr$.$

$$6\mathrm{.}00$ per direct labor hour

$$54,000$ total for month

$1,800$ units per month

Actual production data per unit for June was:

Direct Materials

Direct Labor

Variable $\frac{O}{H}$

Fixed $\frac{O}{H}$

Actual production

$116$ lbs @$$1\mathrm{.}65$ per lb$.$

$3\mathrm{.}1$ hrs @$$15\mathrm{.}00$ per hr$.$

$$25,860$ total for month

$$54,000$ total for month

$1,650$ units

Required:

What is the budgeted fixed overhead application rate for June?

What is the direct materials quantity variance for June?

What is the direct materials price variance for June?

What is the direct labor rate variance for June?

What is the direct labor efficiency variance for June?